Wendy’s shares surge as Trian, its largest shareholder, explores potential deal
Peoria’s Wendy’s drive-thru window.
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Shares Wendy’sAfter a filing disclosed that Trian Partners was its biggest shareholder, extended trading on Tuesday saw an increase of 15%
Trian owns 19.4%, with the help of its partners. Trian said that it’s looking to make a deal “to enhance shareholder value”, which might include an acquisition, merger or other form of capital. according to the filing.
According to the firm, it retained strategic advisors and discussed all options with Wendy’s Board.
Wendy’s indicated in a statement, that they regularly review opportunities and aim to “maximize value for all stockholders”, and will “carefully examine” any Trian proposals.
Trian was founded by Nelson Peltz and invested its first funds in Wendy’s back in 2005 when it was created.
The firm states in their annual report that “at the time Wendy’s was America’s most loved brand. However, after Dave Thomas’s death, the business lost its direction.” portfolio listing.
Trian currently holds three seats on the Board of Directors at the fast food company. Peltz is the Chairman. Trian claims that it previously asked Wendy’s for a reduction in restaurant overhead and improvements to operations to build its brand.
Wendy’s has approximately 71,000 restaurants, and the franchisees. In the first quarter, 2022’s global same-store sales increased 2.4%. The company reported quarterly net income of $37.4 million, or 17 cents per share, for the three-month period ended April 3 — nearly 10% down from $41.4 million, or 18 cents per share, during the same period in 2021.
Wendy’s is constantly trying new menu options and has even created a new restaurant. beefed-up breakfast menuDrive traffic, compete with fast food giants McDonald’sBurger King. The company is facing challenging trends with diners shifting their behavior and inflation at high levels for decades. Some workers are returning to work.
BMO Capital Markets last month downgraded the stockTo market perform, the company has reduced its price target for the stock from $28 to $22 per shares.
Closed Tuesday at $16.27 per shares, down 30% over 12 months. The company now has a market valuation of $3.5 Billion.
—CNBC’s Steve Kopack contributed to this report.